Buying a property is still better than renting based on average prices with purchasing figures becoming more favourable about five to seven years into ownership in most scenarios.

That is according to Susan Thompson, Coldwell Banker Bermuda Realty's agency manager, who said that now is the time for first time buyers to look at getting their foot on the property ladder following the shift to the buyer's market.

Writing in her Sales Market Update for June 2010, Ms Thompson said that while it was almost impossible to time the bottom of the market perfectly, getting a sense of the price trends in Bermuda would allow buyers to make more informed decisions.

She added that prices had dropped off considerably in the past, but seemed to be levelling off at the moment, with the lowest one-bedroom condominium on the market costing around $310,000, a two-bedroom condo around $535,000, a three-bedroom condo $600,000 and a cottage $625,000.

Quoting Mike Larson, a real estate analyst at Weiss Research, who said the market recovery will look more like a U than a V, she said that once home prices hit their lows they would probably stay there for a few years as the economy struggles back onto its feet.

Ms Thompson urged sellers to ignore list prices and base their asking price on similar homes which have sold on the Island over the past three months.

She also advised buyers to be smart about the current mortgage rates, which average 5.75 percent to 6.25 percent for a 30-year variable loan, while it takes longer for banks to approve loans as they require more information.

Concluding that a number of experts in the US had forecast the housing market would slow and then start its steady revival, she said that the same could be expected of Bermuda within six months to one year.